El Paso Corporation (EP)

[NovoMira]

Fitch Affirms El Paso Ratings

Wednesday June 13, 3:12 pm ET

Fitch Affirms Ratings of El Paso Following Word of a $1.28 Billion Notes Offering

NEW YORK (AP) -- Credit-evaluation agency Fitch Ratings on Wednesday affirmed the ratings of El Paso Corp., after the Houston-based natural gas company said it plans to issue nearly $1.28 billion in unsecured senior notes.

Fitch assigned a senior unsecured rating of "BB+" to the proposed offering. "BB" is a speculative, or non-investement grade, designation indicating that there is a possibility of credit risk developing.

The company will use the proceeds from the public offering to buy back any of its $1.2 billion outstanding 7.75 percent senior notes due 2013 from the company's upstream subsidiary El Paso Exploration & Production Co.

Fitch upgraded the El Paso Exploration & Production ratings to be the same as its parent company's ratings.

The rating outlook for all ratings is stable.

Shares rose 30 cents to $16.80 in afternoon trading.